GOLDMAN SACHS: Stocks have never been more vulnerable to the failure of a few mega-companies — and the risks of a blunder are quickly piling up
Their market caps have swelled by a third in 2020, resulting in them holding a 22% share of the S&P 500. That's the largest concentration of any group of top-five stocks since at least 1980, and up from the peak of 18% during the tech bubble, Goldman Sachs' data shows.
To illustrate what is at stake, Kostin separated the so-called FAAMG stocks' returns this year from the remaining companies on the S&P 500. The chart below shows these mega caps have returned 35% while the S&P 500 has returned 2%. And if these companies are excluded, the remaining 495 constituents would be down by 5% year-to-date.In essence, any major slip-up in the upper ranks of the index could result in huge losses for the broader market.
He is not forecasting a 2000-like implosion of the big five. Of course their valuations are elevated — at 31 times 2021 earnings per share versus 18 times for the rest of the S&P 500. But this premium still falls short of the high watermark left during the tech bubble. And this time around, the top stocks actually have earnings growth and quality balance sheets to show for their performance.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Inside TikTok star Dixie D'Amelio's music business, making 'Be Happy' - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Weiterlesen »
Inside the life and career of Robert Mercer, a former Trump mega donor - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Weiterlesen »
Stock market crash: David Rosenberg warns bear market isn't over - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Weiterlesen »
Dow Falls 150 Points After China Retaliates By Ordering Shutdown Of Chengdu ConsulateThe Dow fell 150 points this morning after China retaliated by ordering the U.S. to close its consulate in Chengdu by skleb1234
Weiterlesen »
Dow Falls Nearly 200 Points After China Retaliates By Ordering Shutdown Of Chengdu ConsulateThe Dow fell nearly 200 points today after China retaliated by ordering the U.S. to close its consulate in Chengdu by skleb1234
Weiterlesen »
Seeking nominations for the executives who are leading the next wave of marketing tech - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Weiterlesen »